Knightscope, Inc. (KSCP) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Knightscope, Inc. (KSCP) Industrial Operations Profile

Knightscope, Inc. delivers autonomous security robots and comprehensive security solutions, combining physical presence, real-time data analysis, and human-machine interface. Targeting law enforcement, hospitals, and security teams, Knightscope aims to enhance security operations and reduce crime in dynamic indoor and outdoor environments, setting itself apart through integrated technology.

What Is the Investment Thesis for KSCP?

Knightscope presents a unique investment proposition in the physical security sector, leveraging autonomous robotics and data analytics. The company's growth hinges on the increasing demand for advanced security solutions and the ability of its ASRs to provide cost-effective and efficient surveillance. Key value drivers include expanding the deployment of ASRs across various sectors and enhancing the capabilities of the KSOC and KNOC platforms. However, Knightscope's negative gross margin of -43.9% and profit margin of -298.3% indicate significant challenges in achieving profitability. The company's high beta of 1.59 suggests heightened volatility compared to the broader market. Success depends on scaling operations, reducing costs, and demonstrating the tangible benefits of its technology in reducing crime and enhancing security.

Based on FMP financials and quantitative analysis

KSCP Key Highlights

Market capitalization of $28.0M reflects its small-cap status and potential for growth.

• Negative gross margin of -43.9% indicates challenges in cost management and pricing strategy.
• Profit margin of -298.3% highlights significant losses and the need for improved operational efficiency.
• Beta of 1.59 suggests higher volatility compared to the market, potentially appealing to risk-tolerant investors.
• Focus on autonomous security robots (ASRs) positions the company in a growing market for advanced security solutions.

Who Are KSCP's Competitors?

KSCP is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are KSCP's Key Strengths?

Innovative autonomous security robot (ASR) technology.

• Integrated Knightscope Security Operations Center (KSOC) and Network Operations Center (KNOC).
• First-mover advantage in a growing market.
• Comprehensive security solutions combining physical presence and data analysis.

What Are KSCP's Weaknesses?

Negative gross and profit margins.

• Limited financial resources.
• Dependence on a small number of key clients.
• Relatively small employee base.

What Could Drive KSCP Stock Higher?

New contracts with law enforcement agencies and hospitals.

• Expansion of ASR deployments across corporate campuses and shopping malls.
• Enhancements to the Knightscope Security Operations Center (KSOC) platform.
• Launch of new ASR models tailored to specific environments.

What Are the Key Risks for KSCP?

Financial-distress signal — its Altman Z-Score of -7.88 sits in the distress zone (elevated bankruptcy risk).

• Inconsistent delivery — missed Wall Street EPS estimates in 5 of the last 8 reported quarters.
• Competition from established security companies and emerging technology providers.
• Negative gross and profit margins impacting financial sustainability.
• Regulatory hurdles and privacy concerns surrounding the use of autonomous robots.
• Economic downturn reducing security spending.
• Dependence on a small number of key clients.

What Are the Growth Opportunities for KSCP?

• Expanding ASR Deployments: Knightscope can grow by increasing the deployment of its ASRs across various sectors, including law enforcement, hospitals, corporate campuses, and shopping malls. Securing contracts with large organizations and government agencies will be crucial for driving revenue growth and establishing market leadership. The timeline for significant expansion is within the next 3-5 years.
• Enhancing KSOC and KNOC Capabilities: Further developing and enhancing the capabilities of the Knightscope Security Operations Center (KSOC) and Knightscope Network Operations Center (KNOC) platforms presents a significant growth opportunity. By integrating advanced analytics, AI-powered threat detection, and seamless data integration, Knightscope can offer more comprehensive and proactive security solutions. This will attract clients seeking advanced security management tools and drive recurring revenue through subscription-based services. The timeline for these enhancements is within the next 2-3 years.
• Developing New ASR Models: Introducing new ASR models tailored to specific environments and security needs can expand Knightscope's market reach. This includes developing smaller, more agile robots for indoor use, as well as ruggedized robots for harsh outdoor conditions. By diversifying its product line, Knightscope can cater to a broader range of clients and applications, increasing its competitive advantage. The timeline for developing and launching new ASR models is within the next 3-4 years.
• Strategic Partnerships: Forming strategic partnerships with established security companies, technology providers, and law enforcement agencies can accelerate Knightscope's growth. Collaborating with these partners can provide access to new markets, distribution channels, and technological expertise. This includes integrating Knightscope's ASRs with existing security systems and platforms, as well as co-developing new security solutions. The timeline for establishing strategic partnerships is ongoing.
• International Expansion: Expanding into international markets represents a significant growth opportunity for Knightscope. The demand for advanced security solutions is growing globally, particularly in regions with high crime rates and security concerns. By adapting its ASRs to meet local regulations and security needs, Knightscope can tap into new revenue streams and establish a global presence. The timeline for international expansion is within the next 4-5 years.

What Are KSCP's Competitive Advantages?

• Proprietary ASR technology with integrated sensors and AI.
• Established Knightscope Security Operations Center (KSOC) and Network Operations Center (KNOC).
• First-mover advantage in the autonomous security robot market.
• Growing network of deployed ASRs generating valuable data and insights.

What Does KSCP Do?

Knightscope, Inc., founded in 2013 and headquartered in Mountain View, California, is a developer, designer, builder, and deployer of advanced physical security technologies. The company's core offering revolves around its autonomous security robots (ASRs), which are designed to provide a physical security presence while collecting and analyzing real-time on-site data. These robots are intended to reduce crime by integrating a human-machine interface. Knightscope's product line includes the K3 and K5 ASRs, which autonomously patrol geo-fenced areas using sensors and lasers to navigate dynamic environments. The K1 ASR is designed for ingress/egress points, while the K7 is a multi-terrain ASR. Complementing its ASRs, Knightscope operates the Knightscope Security Operations Center (KSOC), a browser-based interface providing real-time data access and alerts, and the Knightscope Network Operations Center (KNOC), which monitors and manages the ASR network. The company also offers Knightscope+ remote monitoring for clients lacking a 24/7 security operations center. Knightscope serves a diverse clientele, including law enforcement agencies, hospitals, and security teams, focusing on enhancing their security capabilities through innovative robotic solutions.

What Products and Services Does KSCP Offer?

• Design and develop autonomous security robots (ASRs).
• Build and deploy ASRs for physical security.
• Provide real-time on-site data collection and analysis.
• Offer a human-machine interface to reduce crime.
• Operate the Knightscope Security Operations Center (KSOC) for real-time data access.
• Manage the Knightscope Network Operations Center (KNOC) for ASR monitoring.
• Provide Knightscope+ remote monitoring services.

How Does KSCP Make Money?

• Sale or lease of autonomous security robots (ASRs).
• Subscription-based access to the Knightscope Security Operations Center (KSOC).
• Recurring revenue from Knightscope+ remote monitoring services.
• Maintenance and support services for ASRs.

What Industry Does KSCP Operate In?

Knightscope operates within the security and protection services industry, which is experiencing growth driven by increasing security concerns and technological advancements. The market is competitive, with established players offering traditional security services and emerging companies focusing on innovative solutions like robotics and AI. Knightscope differentiates itself by providing autonomous security robots that offer a physical presence combined with real-time data analysis. The company's success depends on its ability to capture market share in a landscape where demand for advanced security solutions is rising.

Who Are KSCP's Key Customers?

• Law enforcement agencies.
• Hospitals.
• Security teams.
• Corporate campuses.
• Shopping malls.

Over the past six months, Knightscope, Inc. insiders filed 4 SEC Form 4 transactions — 0 sales and 4 purchases. On net that is roughly 2.7M shares acquired (about $6.8M) — insiders putting money in tends to read as conviction.

Quarterly Financial Performance: Knightscope, Inc.

Revenue for Knightscope, Inc. came in at $9.0M during Q2 FY2026, a 50.0% improvement versus the preceding quarter. The company recorded a net loss of $14.1M, with diluted EPS of $-0.79. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this micro-cap Industrials company. Across the four most recent quarters, KSCP averaged $-0.86 in diluted EPS.

KSCP Valuation & Market Position

With a $28.0M market cap, Knightscope, Inc. sits in the micro-cap segment of the market. Analyst price targets span from $3.00 to $3.00, with a consensus of $3.00. At the current price of $1.41, that implies approximately 113% upside potential. Relative to its peer group, KSCP's quantitative score of 21/100 is below the peer average of 64/100.

Key Financial Metrics

Return on assets is -62.5%, showing how much profit it generates from its asset base. A current ratio of 1.51 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -125.9%, the inverse of the P/E and a quick read on earnings relative to price.

Knightscope, Inc.'s Piotroski F-Score is 4/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of -7.88 places it in the distress zone, a signal of elevated financial risk.

Knightscope, Inc. has missed Wall Street's EPS estimate in 5 of its last 8 reported quarters — a mixed record worth weighing. Reported results have landed about 10.3% below estimates on average.

Company Profile

Knightscope, Inc. operates in the Security & Protection Services industry within the Industrials sector. It is headquartered in Sunnyvale, US. The company is led by CEO William Santana Li. KSCP has traded publicly since 2022.

KSCP Financials

KSCP Latest News

KSCP Analyst Consensus

KSCP MoonshotScore

Latest Knightscope, Inc. Analysis

Knightscope, Inc. Industrials Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

Official Resources